Vale’s output in Oman declines in Q2

21 de julho de 2016

The Brazilian mining company registered a decline of 4.5% in output in its plant located in Sohar, Oman, due to maintenance shutdowns. From April to June, the plant produced 1.8 million tons of pellets.

São Paulo – The output of Vale’s pellet plant in Oman, in the Middle East, decreased 4.5% in Q2 of this year over the three previous months, according to information released by the company this Thursday (21). It produced 1.8 million tons of iron ore pellets in its unit in the Arab country, located in the city of Sohar.

The output volume tumbled 24% over the same period of 2015. The declines were due to maintenance shutdowns in one of the production lines between May and June, according to the company. Oman’s plant has a capacity of nine million tons of pellets per year. To produce, Vale imports iron ore from Brazil.

The decline in output affected Brazilian exports of iron ore, since international sales from Brazil to the Arab world went down, influenced by the sector’s performance. Besides the industrial plant, Vale also owns in Oman a deepwater terminal with the capacity to handle 40 million tons per year.

Vale’s pellet output also declined overall in this year’s Q2. The company produced, in Brazil and other countries, 10 million tons of iron ore pellets, a decrease of 12.4% over the previous three months and of 18% over the same period of last year.

The company blamed the drop to shutdowns, some due to scheduled maintenance and some to delays for the issue of expansion licenses. Besides, operations by Samarco, which belongs to Vale, are suspended because of the accident with the Fundão waste water dam in the city of Mariana, Minas Gerais, in November of last year. The company says it is planning to resume operations in 2017 despite uncertainties.

From April to June, Vale improved its iron ore output. It produced 86.8 million tons, an increase of 12% over January to March. However, there was a decline of 2.8% over the same months of 2015. In H1 of this year, output reached 164.3 million tons of iron ore, a 1.4% decline over H1 of last year, the company reported.

Vale’s H1 pellets output was 21.5 million tons, a 8.9% decline over H1 2015. Vale’s coal, potassium and phosphate rock output also declined in H1. Manganese ore, nickel, copper, cobalt and gold registered improved outputs in comparison with H1 of last year.

*Translated by Sérgio Kakitani